Fund supervisor on names in weight reduction, biotech
Weight reduction medication have drawn investor curiosity and shaken up different sectors prior to now 12 months or so. Novo Nordisk and Eli Lilly had been two early winners of this pattern, as their medication dominate the burden loss drug market. Yuri Khodjamirian, fund supervisor at Tema ETFs, stated each corporations are a “very powerful duopoly.” “But there’s obviously going to be room ins such a big market. The estimates currently are about $130 billion from Goldman Sachs. We think it’s going to be multiples of that,” he informed CNBC Professional Talks final week. Khodjamirian believes there’s room for at the least three gamers on this house. “I think the market is big enough to sustain three to four players, even at the market caps that are out there right now, but the market’s trying to figure out who that third or fourth player is, and a big breakthrough could be oral GLP-1s,” he stated. He was referring to GLP-1, a category of weight reduction medication that was initially developed as a remedy for diabetes. GLP-1 is a hormone launched within the intestine that stimulates insulin secretion, slows the emptying of the abdomen and communicates to the mind a sense of satisfaction. Shares to observe Khodjamirian named Amgen , which is creating an injectable drug and different merchandise for weight problems. He additionally identified some biotech names with potential however that buyers must watch out about. Certainly one of them is Carmot , which was acquired by pharmaceutical agency Roche final 12 months, he famous. He additionally named smaller biotech companies equivalent to Zealand Pharma and Viking Therapeutics . “These companies are early biotechs that are developing data. They’re a lot more risky than the bigger ones who already have drugs on the market,” Khodjamirian stated. “And therefore, you have to just be very careful with making investments in such companies. So a diversified portfolio is probably the best way to go,” he stated. Tema ETFs presents actively managed exchange-traded funds, with a deal with well being care and life sciences. Khodjamirian can be the chief funding officer of Tema ETFs and manages its Monopolies & Oligopolies ETF , which seems to offer buyers with long-term progress by corporations that function in monopolistic trade buildings. Khodjamirian highlighted three ETFs his agency manages which are within the health-care trade: the Tema GLP-1, Weight problems & Cardiometabolic ETF; the Tema Oncology ETF; and the Tema Neuroscience and Mental Health ETF. He stated there is a “valuation opportunity” in biotech shares for the time being, however warned of dangers. “Smaller companies in the biotech space are difficult to pick. You have to really know what you’re doing, and … in most of our biotech portfolios, we have 50 stocks, we don’t own more than 1%, 2% in some of these companies because of these risks, they could go to zero,” he stated. Nonetheless, there are “a lot” of improvements occurring in biotech, and “loads of them” are buying and selling under the worth of the money on their stability sheets, Khodjamirian stated. “So there’s a valuation opportunity out there,” he stated.
